Putting International Programs in the spotlight

Transcription

1 Putting International Programs in the spotlight

2 At Zurich, we re proud of our ability to help protect businesses that operate internationally. For nearly 40 years, we ve built a global team and a powerful network of fronting partners. This provides you and your clients with consistent service, wherever they operate. We are committed to regularly sharing information, insights and tools, to help you operate in the international programs market and maximise the benefits to your clients and your business. As specialists in international programs, we have created International Programs insights for brokers, a series of articles published online, to help you and your clients overcome the challenges they face when protecting their businesses around the world. To get you started, we ve put the articles into this publication, making it easy for you to view and share the content in a format that works for you. International Programs insights for brokers 2

3 PUTTING INTERNATIONAL PROGRAMS IN THE SPOTLIGHT GLOBAL CONSISTENCY 4-5 COVERAGES 6 COMPLIANCE 7 CONTROL 8-9 CONVENIENCE COST CLAIMS SERVICE NETWORK RISK ENGINEERING CAPTIVES

4 Global consistency Through an international program you can offer your clients consistency in coverage and service in a convenient way. Understanding your clients international challenges Understanding the challenges faced by your international clients can drive competitive advantages for you both. At Zurich we re here to help you realise your own competitive advantage, and assist you in ensuring your clients have appropriate coverage. The globalised business environment means your international clients face increasingly complex and problematic challenges around risk and insurance. Many businesses have to procure risk and insurance coverage in varied territories across the globe, a situation where a single and centralised Zurich International Program could deliver a consistent solution. While it is possible to use a patchwork of locally negotiated and issued policies, this creates the complex task of attempting to manage a myriad of contracts. Procuring separate local coverage across a variety of local countries also involves engagement, communication and collaboration with multiple insurance carriers. Apart from being a time-consuming task, this also creates the possibility of significant coverage gaps, which could ultimately leave your client inappropriately insured when a loss occurs. A Zurich International Program can give your clients the opportunity to enjoy a centrally managed and globally consistent insurance program. We can deliver a program that is supported, procured and managed by a network of knowledgeable people on the ground where exposures exist. 4

5 The advantages of an international program through the five Cs Coverages An international program helps to bridge coverage gaps across territories and avoid duplications, while providing greater transparency on what the policy will cover in the event of a loss. Compliance Working with a global provider knowledgeable in the laws of local jurisdictions means you and your clients can have greater assurance that their insurance program will align with local laws. Control A centralised international program helps to ensure greater consistency and continuity, enhances service delivery, and gives greater transparency before, during and after program implementation. Convenience An international program can provide a one-stop-shop for your clients international insurance needs. The program can give you and your client access to specialists and market-leading tools, whether your client is a large multinational or a mid-sized company operating overseas. Cost Combining domestic and foreign exposures under a master program can give clients the ability to attain overall higher limits at lower cost due to diversification and economies of scale. CONSISTENT COVERAGE AND SERVICE 5

6 Coverages An international program can bridge the coverage gap and ensure policies respond as expected by your clients. Helping your clients to reduce coverage gaps International programs can help you reduce costly errors and omissions in your international clients insurance solutions. At Zurich we can work with you to develop an insurance program for your multinational clients. As a broker, if the insurance solutions you Master Policy recommend do not provide the right coverage, you could be deemed responsible and expose DIL DIC Ground up yourself from a professional indemnity perspective. So it is vital for both your clients and your business that the insurance solutions you propose are appropriate to each client s needs, and avoid any gaps or duplications in coverage. With a Zurich International Program you can give your clients greater transparency in relation to how particular elements would respond in the event of a loss, giving them greater confidence that they have the appropriate Country A Country B Country C Country D coverage in place relative to their exposure in any corner of the world where coverage is available. BRIDGE Out of territory diagram (DIC and DIL) THE DIC = Difference in Conditions DIL = Difference in Limits Non-admitted Ground up coverage in Master Policy Country of client headquarters Here s how an international program works Typically, you will work with us to design a master policy, which will function as a template for coverages, limits and terms in every country where your client s business has exposures and where coverage is available. Based on your client s service need we will then map these exposures in each country to understand where a local policy is recommended or where non-admitted coverage and services are allowed. To reduce coverage gaps, and help ensure the client receives uniform coverage worldwide, differences in limits (DIL) and differences in conditions (DIC) between the various local policies are provided by the master policy. Additionally, a single Freedom of Services (FoS) policy can be provided to cover risks in several European countries. We specifically design Zurich International Programs to help meet the unique needs of each client, while providing greater transparency over what coverage is in place and where. This helps to reduce the duplication of coverage that can occur with decentralised insurance policies. COVERAGE GAP 6

7 Compliance The Zurich Multinational Insurance Application can help you to structure an international program for your clients to achieve best possible compliance. Helping align with tax and insurance regulations to achieve best possible compliance Give your clients greater confidence that their coverage aligns with local tax and insurance regulations with a Zurich International Program. As governments seek new sources of revenue, a sharp increase in tax audits shows that insurance is an area they are looking closely at. You therefore need to be sure that any solutions you recommend align with applicable local regulations to assist with promptly processing and paying a claim. You can help your clients to achieve this with the Zurich Multinational Insurance Application (Zurich MIA). Zurich MIA helps you to structure an international program by giving you straightforward Yes or No answers to questions that matter to your clients in 180 countries and territories and across 42 lines of business. Zurich MIA gives you access to information that is rigorously and continuously assessed by over 140 independent external legal professionals globally, to give you greater certainty when your clients ask you: Can I pay claims into the country? Who is allowed to conduct loss adjustment? Are there any restrictions to risk engineering services? What are my tax obligations when I have non-admitted business? Are cross-border premium payments permitted? Zurich MIA can assist you with payment of cross-border tax obligations to the local tax authorities and issues proof of payment in the event of an audit. Having access to this information also enables you to have deeper conversations with your clients on the tax, claims payment, risk engineering and loss adjustment implications of a particular insurance solution. ACHIEVE BEST POSSIBLE COMPLIANCE Zurich MIA is available for you to use with your clients and is endorsed by some of the world s leading risk management associations. With its help, you can give your clients greater confidence that their insurance program will help protect their business assets around the world. Zurich MIA compared to other tools in the market You might already use another tool for international solutions, but here s why Zurich MIA is different: 1. Zurich MIA provides answers to certain non-admitted activities because even when a country allows Non-Admitted Cover, it might not allow non-admitted claims payment and loss adjustment. 2. Zurich MIA has specific information for 42 Lines of Business because what is allowed for Material Damage might not be allowed for Products Liability. 3. Zurich MIA can give answers on five different business scenarios because countries might allow non-admitted DIC/DIL but not allow Ground up cover. 4. Zurich MIA information is backed by a team of over 140 independent external legal professionals globally. 5. Zurich MIA provides detailed information and proof of payment for Out of Territory tax. Other tools might be useful for local admitted information but when it comes to non-admitted, Zurich MIA can have the answers to the questions that really matter. 7

8 Control An international program can help your clients take greater control of their cover, service, cash flow, data and costs. Helping to empower risk managers International programs can give your clients greater control over their risks, and greater certainty that the right cover is in place. International programs can present an excellent opportunity for you to help put your clients in control over their international insurance and risk management programs. Your clients want greater assurance that they have the right insurance protection in place and a carrier that is ready to respond if required. With an international program your clients can experience greater control and transparency over: 1. Program structure/coverage 2. Service performance 3. Cash flow 4. Insurance, risk and claims data 5. Costs 8

9 You can offer this to your clients with the right insurance and risk management tools and expertise provided by Zurich. The My Zurich portal gives you greater transparency on the insurance and risk management information for your clients. At the touch of a button, you and your clients can have real-time access to copies of the policies, program metrics, claims data, risk engineering information, and policy invoices. The information is integrated in a way that you and your client can gain actionable knowledge making the management of an international program more effective and efficient. Underpinning My Zurich is Zurich s internal International Program System (IPS) a single global platform that connects the entire Zurich network across 220 countries and territories. This and other underlying Zurich systems enable us to manage the key aspects of your client s insurance program such as policy instructions, claims, invoicing and re-insurance. We help you to track your client s program performance metrics at various stages of their program. We can help identify any delays that might impact the roll out or management of a program, and work with you to take actions to help you keep your insurance program on track. By having the right tools and people behind you, all following a consistent and measurable process, you can empower your clients and give them greater confidence that their insurance and risk engineering programs will respond to their needs. With access to the right level of transparency, and control, clients are more likely to stay with you for longer giving you the opportunity to demonstrate more value and increase business. To watch our video on My Zurich click here products-and-services/ tools-for-business/my-zurich HELP YOUR CLIENTS TAKE GREATER CONTROL 9

10 Convenience An international program can make structuring and implementation of insurance across the world much easier for you. How an international program may be the most convenient insurance solution In a fast-paced and ever-changing world, managing exposures in a number of countries can be a daunting and time-consuming task. However, an international program can give you access to support from specialists and the tools you need to manage your clients international needs. Despite the efficiencies available through an international program, many insurance solutions continue to spend large amounts of time and effort trying to provide protection with a decentralised approach, which typically requires you to: 01 Reach out to many contacts in order to understand local coverages, regulations and market practices. 02 Agree on local coverage with each contact in every country with multiple s and phone calls across different time zones. 03 Rely on each country to follow the agreed terms, and depend on them to issue policies and collect payment in a timely manner. 04 Chase claims status updates with the hope that you will be kept informed so that you can manage your client s expectations. 05 Upon renewal, repeat this exercise and agree on coverage again in line with any changes to local coverages, regulations and market practices. Your access to accurate and timely information is often limited, and whatever information you do obtain may be inconsistent in quality and depth, making it very difficult for you to provide certainty that your client requires, leaving them potentially exposed. As a broker, you re heavily dependent on the countries to perform, but have little control over and lack transparency into the issuance of policies, making life difficult for you. It doesn t have to be like this. 10

11 EASIER IMPLEMENTATION A centralised international program can simplify structuring, implementing and managing your clients worldwide insurance Single point of contact At Zurich you have a designated representative who will coordinate the program on your behalf. Up-to-date country information Our Zurich Multinational Insurance Application (Zurich MIA) provides greater clarity on the latest local insurance regulation and premium tax obligations in over 180 countries and territories. Zurich MIA provides local knowledge of what is happening on the ground beyond the regulatory requirements. Live access to all program information Through My Zurich, our online portal, you and your clients can access all program information such as policy issuance, claims, and risk engineering reports before, during, and after implementation. My Zurich allows you to quickly monitor and act on your risk management information, in all countries across all of your locations, in real time. Easy reporting These tools allow you to spend time on sharing meaningful insights with your clients rather than collating data. Transparent claims handling The claims handling protocol is a convenient way to define who should be notified in the event of a claim, designate pre-agreed defence counsel, and set clear escalation points. All of this can be tracked through My Zurich. Smoother renewals With a structured program already in place, Zurich can quickly advise you on any changes from a regulatory perspective, while incorporating any new requirements from your client. An international program can take away much of the difficulty involved in organising insurance in different countries. By partnering with Zurich, you have access to specialists and market-leading tools that help make the entire process less complicated and help free your time to focus on your clients. 11

12 Cost An international program can offer your clients a number of cost benefits compared to standalone local policies. Reducing the total cost of insurance International programs can offer more cost-effective coverage for your clients. Cost is a key concern for your clients that are looking to purchase an international program. Many people assume that the sophistication involved with this type of solution leads to increased costs. Often, the reality is that you can help your clients to enhance their coverage while controlling costs. Purchasing insurance through an international program can offer your clients a number of cost benefits compared to standalone local policies: 1. Economies of scale Pooling all countries risks into an international program offers a global view of your clients risk profiles and can give clients the ability to attain overall higher limits at a lower cost. 12

13 COST-EFFECTIVE COVERAGE Risk diversification When your clients global risks are assessed as a whole, an international program can give clients a single global limit, therefore eliminating the need to pay for multiple standalone limits. Optimal point of risk retention Once a global limit is established, you can help your client to define their optimal level of risk retention based on their risk strategy. Typically, the acceptable global risk retention is higher than what subsidiaries would purchase locally. The higher the retention, the lower the costs can be. Non-standard cover An international program can give clients access to non-standard coverages that may not be available locally, or may be too expensive, in some countries. Flexibility through non-admitted cover By including non-admitted insurance in your client s program, you have more options to address their insurance needs with potential for cost savings. Eliminating duplicate covers With an international program there is greater transparency around all aspects of the coverage in place, which helps to eliminate the duplication of coverage that can occur with a decentralised approach.. With an international program you can help enhance your clients coverage and reduce their overall cost of risk, allowing them to spend their risk management budget more effectively on additional services such as strategic risk management. When clients experience this value, they tend to have stronger and longer relationships with their brokers and insurers. 13

14 Claims An international program can help reduce uncertainty and ensure claims are handled quickly, consistently and effectively. Rising to the challenge of international claims International claims can present additional challenges for you and your clients. Zurich can help you deliver a smooth claims experience through an international program. Managing international claims is often more complex than domestic claims. Different market practices, variable levels of knowledge and experience and, most importantly, determining if coverage is in place and how it will respond, are challenges that can create uncertainty for you and your clients. To address some of these challenges you might recommend that your client purchase policies everywhere they operate. However, with multiple policies, claims may not pay out as expected. Consider some of the questions you ll need to address when placing international insurance and how an international program could provide the answers you and your clients need. HANDLING CLAIMS CONSISTENTLY Is your client s coverage truly global? Local policies are designed to respond to local risks, but what happens if several of your client s subsidiaries are involved in the same claim? An international program can provide an extra layer of insurance protection using a master policy that sits across the policies purchased locally. International programs can provide flexibility and can be structured around your client s risk strategy. They can provide consistency in how claims are handled, which policies will be triggered, and how payments are administered. 14

15 A Zurich International Program tracks and reports claims systematically and consistently Centralised approach Collate claims data Identify claims trends Reduce claims Can claims be paid everywhere your client needs them to be paid? If your client doesn t have local policies in place and these countries do not allow non-admitted coverage, the insurer might not be able to pay the funds where the claim happens. With a Zurich International Program, your client can experience the benefits of a globally consistent and transparent claims service delivered by specialists on the ground. Our claims specialists understand the local language, culture, market and regulatory environment, and aim to offer consistent services. What happens in the event of a major loss? When a major claim occurs, speed and accuracy are key. You want to make sure you provide the right information so that your client can take appropriate actions, such as issuing guidance to subsidiaries, implementing mitigation activities (like finding different suppliers), and understanding and planning for the potential financial impact of the loss. Without a centralised approach with established communication channels and identified escalation points, this task falls to you and your network, with the chance that information might be delayed and incomplete. What happens if one of your client s subsidiaries has insufficient coverage? With a decentralised approach, organisations are often left to choose coverage, limits, and retentions locally, according to their local strategies, budgets, and experience. While this might suffice for attritional losses, a large loss can leave your client exposed. If a loss occurs but the available coverage limit is insufficient, your client will look to you for answers. While it is impossible to foresee every claim scenario, an international program can offer Difference in Limits and Conditions coverage to help ensure your client can balance global exposures with local strategies and address unlikely loss scenarios. How can you help your clients to mitigate risks with claims data? A decentralised approach makes it difficult for you and your clients to collect and assess claims data effectively, which can lead to delays or an inability to identify claims trends in various countries. Without this information, your clients might not be able to take preventative actions to reduce their claims. An international program can help track and report claims systematically and consistently, so you can spend more time supporting your client s risk management strategy and less time collating data. Zurich issues claims service protocols and measures the performance of service across our network, so we can share with you the status of a claim through the My Zurich portal. Zurich can typically provide a dedicated single point of contact to help make the claims handling process as smooth as possible. In addition, the My Zurich portal can provide insight into claims trends internationally, rather than having to follow up individually with each country. This can help you focus on identifying patterns across countries, regions, plants, etc., and recommend risk mitigation actions to help your client manage their total cost of risk. 15

16 Service An international program can give you greater control over the service that you and your clients experience. GREATER CONTROL OVER SERVICE Achieving greater control through consistent service Consistent service is essential to the success of a centralised insurance program. With a decentralised program, many aspects of service are usually out of your control, because you depend on people in each country to deliver what your client expects. When you deal with multiple contacts around the world, the chance of a breakdown in communication increases, as does the potential for errors. Each party may follow their own sets of procedures, and aligning them can become a very difficult task. On top of that you may also have to handle the implications of differing languages, cultures and market practices. Ideally, you want every person handling your client s insurance needs to take the same level of care that you do, and make it their priority. Your client counts on you to handle any issues, but how do you give your clients the certainty they need by ensuring there won t be any surprises and that the policy implementation around the world is transparent? 16

17 01. dedicated team 02. consistent service 03. measure performance 04. oversight of clients 05. continuous improvement 06. customised service With a centralised international program, you can have greater control over the service provided to you and your client. Clients tell us that the biggest reasons they buy an international program are consistency of service and certainty of cover. At Zurich we have considered all of the issues and structured our program to make service a priority. 01. We have dedicated teams in place across the Zurich network to handle international business so that your client s program is given the priority it deserves, regardless of size of premium. 02. You should experience a consistent implementation process, as all of our employees follow global operating directives. Our partners also adhere to the same directives, and we put in place Service Level Agreements after a rigorous selection process. 03. We measure the service performance on a weekly basis with a single set of metrics for all countries. All measurable steps of your client s program implementation are tracked in our International Program System (IPS). The system captures key program information including policy issuance dates, premium payment amounts, payment dates and claims status, which allows us to identify and quickly respond to service issues. 04. As a broker you want oversight of your client s international program. With your client s permission, we can give you access to the My Zurich portal, which will enable you to see your client s insurance and risk management data as well as a variety of reports. This information is available to you in real time, freeing you to focus on insights rather than collating information. 05. To help drive continuous service improvements, we issue a Customer Service Report. This document contains key performance data ranked by country and facilitates discussion between you, your client and us to address pitfalls and agree on an action plan where needed. 06. Every client s needs are different, and we can customise servicing to suit you and your client. With over 52,000 international program policies issued every year by Zurich Insurance Group, our service teams have the experience to support you. When you work with a global insurer like Zurich for international programs, you can have greater control over the service you experience. With specialists on the ground, and tools and processes that can give you greater transparency and oversight, we can give you greater confidence that your clients service needs will be treated with the priority they deserve. 17

18 Network The support of a strong international network will give you and your clients confidence, everywhere around the world. 40 providing international programs YEARS How do you find the right partner for international business? Knowing and trusting the partners handling your clients insurance needs is an essential element of every international program. We choose our network partners carefully in each territory, selecting a top player with the weight to get things done locally. As a broker handling international business, there is no room for surprises. While you can appreciate that different countries have different regulations, you want to ensure any insurer you recommend to your client delivers a consistent service experience, wherever your clients need it. Not only do you want to know if a policy can be issued in a certain territory, you want to know from an insurer: Who will be issuing that policy? How effective are their claims services? How will issues be addressed? What level of experience do they have in the markets in question? What is their ability to understand your client s needs? If the insurer works with partners, what s their selection criteria? How is partner performance measured?? Only when you have the answers to these and other important questions can you more confidently recommend an insurer s international network capabilities. Over nearly 40 years, Zurich has built one of the market-leading international networks, serving clients international insurance and risk management needs in over 220 countries and territories, and issuing over 52,000 policies a year. We do this through Zurich-owned offices and strategic network partners. We have chosen to work with network partners rather than setting up Zurich offices, because our partners are one of the best in their market, they understand the local environment, and have the necessary infrastructure in place. The local expertise of these partners can bring a lot more value to your clients than any insurer-owned small operation possibly could. 18

19 A STRONG NETWORK Strict partner selection criteria We choose our network partners carefully in each territory, selecting a top player with the weight to get things done locally. Our partner selection criteria includes: 1. Partner facts, business strategy and reputation Zurich explores facts about partners such as market position, business strategy and its fit to Zurich and its customers. Moreover, Zurich uses RepRisk, the business intelligence provider which serves as due diligence, research and monitoring tool. 2. Country assessment based on Zurich Risk Room which is an award-winning global risk analysis tool designed to illustrate the impact of multi-variate global risks on individual countries. Zurich Risk Room indicates the level of risk (Low, Medium, High) of a particular country considering e.g. business, economic and political risks. 3. Financial assessment is performed using the Zurich Credit Rating tool which generates a rating based on the S&P rationale. The key financial indicators, the sovereign rating of country and rating of parent company are considered for the final rating. A company rated by the international rating agencies (S&P, A.M. Best, Moody s, Fitch) is considered and translated into S&P equivalent as the basis for the internal Zurich Partner rating concept. 4. Sanction screening and licence check Zurich screens network partners and key personnel against existing sanction regimes and multiple lists, which allows us to comply with sanction laws by blocking or flagging prohibited transactions. Zurich uses the World Check tool, which satisfies demands for Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT), Politically Exposed People (PEP), and Know Your Customer (KYC) due diligence. 5. Operational fitness Zurich assesses the underwriting, claims, accounting and IT capabilities of its network partners. Zurich engages in discussions and takes actions in order to improve some aspects (performance, quality, and training) of the networking partners operations. Brokers and clients consistently tell us that they want a consistent service experience no matter where their potential exposures are. We aim to deliver a seamless service, regardless of whether your client s policy is issued by a Zurich office or one of our network partners, because the Zurich network follows the same operating directives and its performances are measured in the same way. All individuals who touch your client s program go through the same mandatory international program certification to ensure they understand your client s international insurance and risk management needs and operate consistently to deliver the same experience. 19

20 Network The support of a strong international network will give you and your clients confidence, everywhere around the world. Hub offices create a strong, efficient network HUB SLOVAKIA Bratislava covering Central and Eastern Europe and Central Asia HUB MEXICO Mexico City covering Latin America and the Caribbean HUB BAHRAIN Manama covering Africa, the Middle East and India HUB SOUTH AFRICA Johannesburg covering sub Saharan Africa HUB MALAYSIA Kuala Lumpur covering Southeast Asia and Pacific Islands and Chinese provinces not covered by Zurich s own license 20

21 A STRONG NETWORK Customer service is a top priority and our exclusive hub approach ensures a strong and efficient network that can help meet your clients insurance and risk management needs, while swiftly handling claim-related issues. We have a team of 50 people across our hubs dedicated to managing our network partners around the world, providing you and your client with: Local insight Zurich Hubs are staffed by local insurance professionals who understand the markets, laws and cultures of the regions they cover, enabling them to exert local control over global programs. Quality assurance Zurich Hubs work with and manage local partners that include some of the most reliable insurance providers in their respective markets. Many of these have a long-standing relationship with Zurich of almost 30 years. The Hubs monitor partner performance to ensure compliance with Zurich s high standards of customer service. Consistent coordination of policy and premium invoice issuance and claims Zurich s International Programs Operations ensures our global network operates seamlessly. This proven governance structure helps to deliver globally consistent coverage and service. Buying power bundling business fronted by network partners helps increase negotiating strength. When you recommend an international program with Zurich, you can have greater confidence that your clients needs come first. We ve developed one of the market-leading international networks that helps meet your clients international insurance and risk management needs in a seamless manner across 220 countries and territories. 21

22 Risk engineering Risk engineering services can strengthen your client relationships and enable you to make better-informed decisions on placing coverage. How can you help engineer the best risk management solutions for your clients? Understanding your clients global risk profile and approach to managing their total cost of risk is an essential element of putting together an effective international program. Risk engineering can produce valuable insights for your clients and for their business. Understanding a business risks can help you and your clients have more in-depth discussions and make more informed decisions on effective ways to reduce the total cost of risk. Delivering these services offers excellent opportunities to strengthen and deepen your client relationships. The challenge can be delivering these services as widely and consistently as you would like. For instance, do you have sufficient risk engineering resources to service all of the locations where your clients are based? And can you offer knowledge and experience across the multiple industries your clients operate in? Do you have the capability to assist with the wide risk spectrum your clients face? You can always work with local independent specialists, but how can you then be sure assessments are being carried out consistently? Finding the answers to these challenges opens the door to exciting new possibilities, and we are confident that we can help. At Zurich our risk engineering services offer a way to collaborate with your own loss control services to help create new opportunities for business and strengthen existing relationships with mutual clients. STRONGER CLIENT RELATIONSHIPS 22

23 We can work with you and your clients to provide meaningful insights based on our industry experience, helping you and your clients to address their risks and prevent losses. Our multi-line approach offering coverage for property, liability, motor fleet, marine, safety, business resilience and supply chain is distinctive in the market and can help enable deeper and more complex insights and assessments. With your client s permission, we can give you online access to their risk assessment and exposure data increasing transparency, providing valuable insights and helping you to visualise, understand and address the risks they face. We will give you and your clients high-quality service around the world. We have 800 risk specialists working in over 40 countries, and all of them undergo extensive, ongoing and consistent training. We apply tried and tested risk assessment methodology with consistent risk grading criteria globally. By assigning values to a variety of risk factors, each with appropriate weightings, we are able to provide an overall risk grade across each client s portfolio. This consistency of our risk assessment grading methodology also allows us to benchmark a client s risk profile across their sites and against industry and regional peers. Our extensive global experience means you can feel confident that we can provide broad, international solutions that are aligned with local insurance laws and regulations, legislation, customs and culture. The following case study shows how we ve successfully worked with one broker to deliver a global risk engineering program to a multinational client. Case study Zurich collaborated with the broker to handle the heavy workload and to deliver a bespoke risk engineering program for a multinational client. Zurich Risk Engineers visited the larger sites and the broker s Risk Consultants visited the smaller sites. The client was happy with this approach but wanted all reports in the same format with a single grading in use and with all reporting data and Risk Improvement Actions (RIAs) available online. To achieve this, Zurich provided training on its property and fire grading, loss estimate methodology, RIA categorisation, and more to the broker s consultants and provided ongoing support through a report review process to meet underwriting requirements. Templates were created for the broker s consultants to use to collect the information, which was then uploaded to a single management system, making it easy to run reports and give online access to the client via the My Zurich portal. Now, with the Zurich Risk Advisor app, this can be achieved even more easily as brokers and clients can assess smaller locations using the same methodology. The data gathered was uploaded to a central reporting system, reviewed, and then included in reports and benchmarking. In addition to risk assessments, Zurich worked closely with the broker and the client in other areas helping with project reviews, updating the client s loss prevention policy, and loss investigation and continues to hold regular tripartite meetings to discuss how the program is running. Zurich is continually refining its processes to make them smoother and easier for all concerned. Over 75 years of risk engineering experience Industry expertise operating in over 40 countries Over 60,000 customer risk assessments every year 800 risk specialists worldwide Over 800 international risk engineering programs globally 23

24 Captives Knowledge and experience in captives can set your business apart and lay the foundations for stronger, more profitable relationships. How your clients captives can open doors for new business Establishing a captive alongside an international program can create excellent opportunities to support a client s self-insurance strategy, increase your income, and strengthen your relationships. While a lot is said about the benefits of captives to your clients, the potential benefits to your business are often overlooked. Working with a client on their captive or even simply talking to them about creating one can benefit your business in many ways, as offering captive knowledge and experience could differentiate your business and allow for discussions and approaches that go beyond price. The relationship established by creating a captive structure is service and experience driven. The interactions between you and your client could be enhanced, and your understanding of your client s needs could grow as they take centre stage. This can allow you to gain deeper insight into your client s business concerns and decision making, which in turn could help you provide more specialised support and solutions potentially creating a stronger bond and a service offering that can be challenging for your competitors to replicate. In the current market, a focus on captives can therefore be a strong differentiator in winning and retaining clients. It can also help you grow the business you do with a client, as non-traditional and self-insured risks can now be set up through a captive, potentially enabling you to tap into currently uninsured and thus un-brokered areas. Considering the difficulty of winning over clients once they have established a relationship elsewhere, it can be a wise choice to consider the potential opportunities of captives. 24

25 KNOWLEDGE AND EXPERIENCE Four more ways that a captive can enhance your business As well as the potential benefits described, including a captive in an international program can help you: 01. tailor coverage beyond the insurer s appetite 02. extend the limit/ capacity that would normally be available 03. create more economical solutions, especially in tariff markets 04. control payment timeline and money flows 25

26 Captives Knowledge and experience in captives can set your business apart and lay the foundations for stronger, more profitable relationships. The online Zurich Captives Guide can help you introduce captives to your clients and talk them through the whole process. 1. The process and option for setting up a captive 2. Managing a captive and operating costs 3. Choosing a location for your captive 4. Changing your captive s location 5. Is it time to re-evaluate your captive? Decline Introduction The lifecycle of a captive Winding down captives through our Loss Portfolio Transfer (LPT) capabilities Feasibility study and support for Captive formation Restructuring and re-domiciliation of captives. Support in acquiring and selling captives Capital requirement assessments and Quantitative Risk Analysis (QRA). 6. Exiting a captive Maturity Operations View our online Zurich Captives Guide here zurichcaptivesguide.com/ 26

27 KNOWLEDGE AND EXPERIENCE Case study The client was a manufacturer based in Hong Kong with subsidiaries all over the world. They bought liability (combined) in each country through a coordinated program with a (USD 10 million deductible USD 100 million coverage), and purchased mandatory coverage locally. The client s strategy was to self-insure where possible, and their broker and Zurich saw an opportunity to demonstrate the benefits of self-insurance through a captive. As a result, the client established a captive structure that helped them to: set up an optimal self-insured retention based on actual claims data simplify and establish a process to further optimise the retention as claims experience evolved include supply chain coverage, which was one of their major risks but also one that they didn t believe was economical to insure include coverage for cyber risks, manufacturer E&O and product recall positively impact their balance sheet. Supporting your focus on captives The market for captives could be wider than you think, as clients don t need to have sophisticated risk management structures or strategies in place in order to take advantage of a captive structure. The value of a captive can increase with an international program and it can be a great solution for risks that are difficult to place. If you would like to explore new opportunities around captives with your clients, please get in touch as we would be delighted to work with and support you. 27

28 This is a general description of insurance services and does not represent or alter any insurance policy. Such services are provided to qualified customers by affiliated companies of the Zurich Insurance Group Ltd, as in the US, Zurich American Insurance Company, 1400 American Lane, Schaumburg, IL 60196, in Canada, Zurich Insurance Company Ltd, 400 University Ave., Toronto, ON M5X 1C9, and outside the US and Canada, Zurich Insurance plc, Ballsbridge Park, Dublin 4, Ireland (and its EU branches), Zurich Insurance Company Ltd, Mythenquai 2, 8002 Zurich, Zurich Australian Insurance Limited, 5 Blue St., North Sydney, NSW 2060 and further entities, as required by local jurisdiction (05/17) TCL 28